When closing a medical practice such as a doctor’s office, dental practice, or hospital, understanding the laws related to practice closure is vital. Every state has specific regulations governing how patients must be notified, how long medical records must be maintained, and more. Medical professionals must follow specific legal and ethical steps to ensure a smooth patient and staff transition. Failure to adhere to these requirements can lead to legal repercussions and patient care disruptions.
This guide provides a comprehensive overview of the legal requirements for closing a medical practice in California.
Key Requirements for Medical Practice Closure
Closing a medical practice is a multifaceted process that requires careful planning and compliance with legal obligations. Some items you will need to keep in mind, include:
Patient Notification
How and when will you notify patients of your intent to close your practice? Patients must be given adequate notice of the closure. This allows them to find alternative care providers.
Medical Records Management
Patients must be informed about how to obtain copies of their medical records. In many states, physicians are required to retain records for a certain period (e.g., seven to ten years) after the practice closes or to contract a medical records custodian to deliver records to patients for that time period.
Staff Considerations
Employees should be notified per labor laws, and any contractual obligations regarding severance or final paychecks must be fulfilled.
Regulatory Compliance
The practice must notify licensing boards, Medicare/Medicaid, and malpractice insurers of the closure. Additionally, the practice may need to formally dissolve as a business entity.
Disposal of Medications and Equipment
Prescription drugs and medical waste must be disposed of according to federal and state regulations to ensure environmental and public safety.
Financial and Legal Obligations
Outstanding debts, leases, and vendor agreements must be settled before closure. Legal counsel can help navigate any complexities.
Download a Checklist for Closing Your Medical Practice
Fill out the form to receive a PDF download of the medical practice closure checklist we use, or contact us today to learn more about how we can help you seamlessly close your practice and begin the next chapter in your life.
California Medical Practice Closure Laws
When closing a medical practice in California, healthcare providers must adhere to specific state laws and regulations to ensure a compliant and smooth transition for patients and staff.
California Patient Notification Requirements
The Medical Board of California emphasizes the importance of notifying patients well in advance to prevent patient abandonment and ensure continuity of care. Physicians are advised to send written notifications to their patients, detailing the final date of practice and any pertinent information regarding the transition. The California Medical Association recommends sending these letters via certified mail with return receipt requested and retaining copies along with the return receipts for record-keeping purposes.
In California, closure notifications need to be sent out at least 90 days prior to your closure date.
We recommend sending a physical letter, posting signage around your practice, and posting information about the closure on your website. It is essential that anyone who visits your practice or practice website can easily find the closure information.
A closure notification letter should include:
- The date of closure.
- The reason for closure (i.e., retirement, relocation, etc.).
- A forwarding address or phone number for questions after your closure.
- An authorization form for patients to sign so that their medical records can be transferred to a new practice.
- Information on patient record storage, including where the records will be stored, how to contact the storage facility, and any costs associated with patient record requests.
California Medical Records Retention and Access Requirements
Effective January 1, 2024, the Medical Practice Act mandates that physicians maintain patient medical records for a minimum of seven years from the last date of service. For minor patients, records must be kept for at least one year after they reach 18 years of age, but not less than seven years in total. It’s crucial to inform patients about how they can obtain copies of their medical records and to arrange for secure storage and accessibility of these records post-closure.
If you don’t want to maintain responsibility for storing and fulfilling medical records requests, we can help. Learn more about our custodian of medical records services here.
For more details on California’s medical record retention requirements, consult the medical board of California or legal counsel.
California Medical Board Notification Requirements
Physicians must notify the Medical Board of California about the practice closure and comply with any additional state-specific requirements. This includes informing relevant licensing boards and ensuring all professional obligations are met.
Additional Resources for Closing Your Medical Practice in California
To get up-to-date information about medical practice closure laws in and requirements in California, please see these additional resources:
- Information Pertaining to the Practice of Medicine, California Medical Board
- California Medical Association Retirement Notice
- California Medical Association Retention of Medical Records
- California Health and Safety Code, Patient Access to Health Records
How Desert River Solutions Can Help
Desert River Solutions is a trusted medical records custodian serving healthcare providers nationwide. Our services include:
- Electronic medical record extraction for seamless digital transition.
- Document scanning and storage for secure retention.
- HIPAA-compliant record management and destruction.
- Patient record request fulfillment, ensuring continuity of care.
Managing medical records retention is a critical aspect of healthcare compliance. Whether you’re closing a practice, transitioning to digital records, or ensuring legal compliance, working with a trusted medical records custodian can save time and reduce risk.
At Desert River Solutions, we help healthcare providers in California and beyond with secure, HIPAA-compliant medical records storage and management. Need help with medical records retention in California? Contact Desert River Solutions today!
Legal Disclaimer: the information contained in this site is provided for informational purposes only, and should not be construed as legal advice on any subject matter.
